How to Structure the Sale of a Small Business

How to Structure the Sale of a Small Business

Know What You Want

A high price, a fast sale, or satisfying terms? What’s favourable to you is often unfavourable to the buyer. You’re not likely to get everything you want, so know what you can compromise on.

And remember, your success in selling your business depends on many factors. Whatever you’re going for, there’s no guarantee you’ll get it, though following the right steps to sell will greatly increase your chances, as will thorough preparation.

If you take our Transition Success Program, you’ll learn how to define what you want from the sale. But here’s a quick tip. Well before putting your company on the market, ask yourself two questions: What can I be flexible on, and what are my non-negotiables? Here are examples of goals you might decide not to budge on:

•  “Given my financial needs, I can’t come down on price.”
•  “I need a big chunk of cash immediately upon selling.”
•  “I need to find a buyer with the right skillset and mindset.”
•  “The new owner needs to continue my business model and retain all my employees.”
•  “I’ve been diagnosed with serious health problems and need to get out fast.”
•  “One of my employees wants to buy the business, and I want to transfer it to her.”